Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)

41,064 views

Published on

Dr. Alexander Osterwalder's presentation from his Open Lecture on Business Model Reloaded that was given at SKOLKOVO Campus on June 18, 2011

Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)

  1. 1. Business Models Reloadeddesigning tomorrowʼs enterprise BusinessModelGeneration.com @business_design
  2. 2. letʼs start with a story...
  3. 3. BusinessModelGeneration.com
  4. 4. 1,000,000 new book titles were published in the U.S. in ʼ10
  5. 5. 11,000new business books appear every year
  6. 6. 12% decline of sales in majorbookstore chains (ʻ07-ʼ09)
  7. 7. ?so what did we do?
  8. 8. we changed the product...
  9. 9. ? would a big publishinghouse have taken us on with this book?
  10. 10. No!
  11. 11. we changed the business model...
  12. 12. “ you canʼt write about business model innovation without an innovative business model ”
  13. 13. $24.-
  14. 14. $36.-
  15. 15. $54.-
  16. 16. $81.-
  17. 17. $250.-
  18. 18. Results
  19. 19. # in the top 10 of softcover business books in the US
  20. 20. # 150ʼ000+ #bmgen copies in print (May 2011)
  21. 21. # 18 #bmgen translations upcoming in 2011
  22. 22. more importantly...
  23. 23. letʼs go back in time to understandbusiness models...
  24. 24. Time Machine
  25. 25. 1958
  26. 26. [sources: Henry Chesbrough, photo: life.com]
  27. 27. revenue growth of 41%compounded for the next 20 years [sources: Henry Chesbrough, photo: xerox.com]
  28. 28. Time Machine
  29. 29. 1997
  30. 30. ʼ10 revenue of $29.32 billion ($8.5 billion net income)
  31. 31. ?what do both examples have in common?
  32. 32. 1 Product innovation alone was not sufficient They enabled the new product through the business model
  33. 33. 2 They didnʼt nor could they copy from competitors They invented new business models
  34. 34. 3 They couldnʼt prove in advance that the models would work They had to take some risk and experiment
  35. 35. 123 business beyond beyond design beyond testing product model thinking copying asking beforeinnovation language competitors attitude for proof building
  36. 36. businessmodellanguage 1
  37. 37. buzzgroup
  38. 38. how much did the cost of home coffee consumptionchange for Swiss householdsover the last couple of years?
  39. 39. 6-8 xmore
  40. 40. Nespresso changed thebusiness model for espresso
  41. 41. RESULTS
  42. 42. own recyclingcontainers
  43. 43. one of the fastest-growing businesses in the Nestlé group
  44. 44. average growth of30% p.a. since 2000
  45. 45. over 3 billion CHF annualrevenue with 1 product line (2.4 bio EUR)
  46. 46. buzzgroup
  47. 47. ?Discuss and describe what you think Nespressoʼs business model is
  48. 48. buzzgroup
  49. 49. ?discuss with your seat neighbor what a business model is and write down your definition
  50. 50. ? what elements did youmention in your definition?
  51. 51. ? ?
  52. 52. BusinessModel Canvas
  53. 53. to describe, challenge,design, and inventbusiness models moresystematically
  54. 54. 9 building blocks
  55. 55. CUSTOMER SEGMENTS images by JAM
  56. 56. VALUE PROPOSITIONS images by JAM
  57. 57. CHANNELS images by JAM
  58. 58. CUSTOMER RELATIONSHIPS images by JAM
  59. 59. REVENUE STREAMS images by JAM
  60. 60. KEY RESOURCES images by JAM
  61. 61. KEY ACTIVITIES images by JAM
  62. 62. KEY PARTNERS images by JAM
  63. 63. COST STRUCTURE images by JAM
  64. 64. key value customer activities proposition relationships key customerpartners segments cost revenuestructure key streams resources channels images by JAM
  65. 65. key value customer activities proposition relationships key customerpartners segments cost revenuestructure key streams resources channels images by JAM
  66. 66. images by JAM
  67. 67. CANVAS OVERLAY KEY KEY OFFER CUSTOMER CUSTOMERPARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS KEY CHANNELS RESOURCES COST STRUCTURE REVENUE STREAMS images by JAM
  68. 68. CANVAS OVERLAY KEY KEY OFFER CUSTOMER CUSTOMERPARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS KEY CHANNELS RESOURCES COST STRUCTURE REVENUE STREAMS images by JAM
  69. 69. The Business Model Canvas KEY KEY OFFER CUSTOMER CUSTOMERPARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS building building block block building building building blockbuilding block block block KEY CHANNELS RESOURCES building block building block building block COST STRUCTURE REVENUE STREAMS buildi g ng building buildin block block block
  70. 70. illustra-on
  71. 71. Nespresso changed thebusiness model for espresso
  72. 72. Nespresso’s business Model KEY KEY Value CUSTOMER CUSTOMER PARTNERS ACTIVITIES Proposition RELATIONSHIPS SEGMENTS B2C marketing tion Nespre distribu sso households Club (espresso fans) *** Nespresso necoffee machi production machines rs manufacture businesses etail KEY **** r CHANNELS Nespresso ts RESOURCES outle mail coffee pods distribu order growers tion c offee channels Nespresso.com productio call t s n Nespresso stores paten facilities center COST STRUCTURE REVENUE STREAMS B2C sales of distrib Nespresso ution sales of production machines marketing Nespresso po ds
  73. 73. but Nespresso almost failed in1987 due to a nonperforming business model
  74. 74. Nespresso’s 1987 Model KEY KEY Value CUSTOMER CUSTOMERPARTNERS ACTIVITIES Proposition RELATIONSHIPS SEGMENTS machine offices Nespressomanufacturer KEY system CHANNELS RESOURCES joint venture with machine manufacturer COST STRUCTURE REVENUE STREAMS
  75. 75. buzz  group
  76. 76. BusinessModelGeneration.com/canvas
  77. 77. UNDERSTANDER (interviewer) EXPLAINER (interviewee)asks questions and sketches answers business modelout interlocutors business questions to help interviewermodel with post-it notes understand his/her core model
  78. 78. the businessmodel generation is changing the way we are creating value
  79. 79. resourcedriven innovation
  80. 80. value proposition/tech driven innovation
  81. 81. job-to-get-donedriven innovation
  82. 82. financedriven innovation
  83. 83. multiple-epicenter driven
  84. 84. designthinkingattitude 2
  85. 85. design ≠only form
  86. 86. F rankG ehry [source: Sony Pictures]
  87. 87. [source: Sony Pictures]
  88. 88. [source: Sony Pictures]
  89. 89. [source: Wikimedia Commons]
  90. 90. ?what does that have to dowith business models and my organization?
  91. 91. ?what does thatmean for us?
  92. 92. BusinessModelGeneration.com
  93. 93. business model prototypingnapkin sketch Canvas business case field test
  94. 94. casestudy
  95. 95. 3 years ago in Mexico
  96. 96. Pomarfin - a Finnish shoe manufacturer
  97. 97. PARTNER KEY OFFER CUSTOMER CUSTOMER NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS shoe manufacturing B2B mass sho e logistics market KEY DISTRIBUTION RESOURCES CHANNELS retail partners retail partners sales force COST STRUCTURE REVENUE STREAMS sales to uringmanufact logistics retailers costs cost
  98. 98. ?Whatʼs the big challenge for Pomarfin and its shoe manufacturing model?
  99. 99. so Pomarfin invented the“perfect fit” shoe, based on a technology innovation
  100. 100. PARTNER KEY OFFER CUSTOMER CUSTOMER NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS shoe manufacturing B2B mass sho e logistics market KEY DISTRIBUTION RESOURCES CHANNELS retail partners retail partners ning foot scan sales y technolog force COST STRUCTURE REVENUE STREAMS sales to uringmanufact logistics retailers costs cost
  101. 101. buzzgroup
  102. 102. ?How could Pomarfin use foot- scanner technology to become competitive again?
  103. 103. PARTNER KEY OFFER CUSTOMER CUSTOMER NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS shoe manufacturing B2B mass sho e logistics market KEY DISTRIBUTION RESOURCES CHANNELS retail partners retail partners ning foot scan sales y technolog force COST STRUCTURE REVENUE STREAMS sales to uringmanufact logistics retailers costs cost
  104. 104. Pomar’s  design  decision
  105. 105. PARTNER KEY OFFER CUSTOMER CUSTOMER NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS shoe manufacturing personal online footprint B2C B2Bcs ti high-end men’s logis IT mass sho e logistics manageme market nt market KEY DISTRIBUTION ss own s ma RESOURCESn tores CHANNELSn atio a d to miz retailretai partnl cus tory ers fac partners retail online partners ning store foot scan sales y technolog force COST STRUCTURE REVENUE STREAMS royalty sales to uringmanufact payments logistics retailers direct web to costs retailers cost sales
  106. 106. testingbeforebuilding 3
  107. 107. -­‐$800m
  108. 108. a business model might lookgreat on paper... building block building buildin block g building block block building block build ing block building building block block build block ing .. but after all it is only a... building buil ding block blo ck buildin g block
  109. 109. ... a set of hypotheses guess guess guess guess guessguess guess guess guess guess guess guess
  110. 110. StevenBlank.com/books.html
  111. 111. you need to get out of thebuilding and ...
  112. 112. test each hypothesis(e.g. with customers)
  113. 113. business model layer t t sho r bes s you s inesth is is ou r bu k h o w y wor ld at l cou m ode building building block block building block building building building block block block building block building building block block buildin g g building buildin block block block
  114. 114. exphypothesis layer imp licit ly o ort utli ant ne whi the ch hyp mo you oth st r bu ese sine s o ss n is b mo uilt del hypothesis hypothesis hypothesis s hypothesi hypothesi s hypothesis building s building hypothesi block block building hypothesis hypothesi s block building building building block block block hypo building is thesis ock othes bl hypothesis hyp building building block block buildin g g building buildin block block block
  115. 115. test layer test test test test test test building building test block block building test test block building building building block block block building building ilding block test bu block block test test building building building block block g building k buildin bloc building block block block ilding buildin bu g g block building buildin block block block building building block block sts buildin g buildin block g building come up with te block block ach to verify e hypothesis
  116. 116. iPadapp
  117. 117. BusinessModelGeneration.com/toolbox iPad stencil, actual scale, template by hortis, le studio. Feb. 2010. http://hortis.lestudio.chdate: project: screen:author:
  118. 118. BusinessModelGeneration.com/toolbox iPad stencil, actual scale, template by hortis, le studio. Feb. 2010. http://hortis.lestudio.chdate: project: screen:author:
  119. 119. FAQ
  120. 120. ? so whereʼs thecompetition in this model? FAQ
  121. 121. ? is business model innovation only aboutdisruptive new models? FAQ
  122. 122. ?isnʼt execution the most important thing? FAQ
  123. 123. THANK YOU! BusinessModelGeneration.com AlexOsterwalder.com BusinessModelAlchemist.com Twitter: business_design

×